Michael Burry's Latest Monster Gamble: 'Big Short' Investor Bets $47M Against 2023's High-Flying Sector
Portfolio Pulse from Piero Cingari
Michael Burry, known for his 'Big Short' fame, has placed a $47 million short bet against the semiconductor sector by purchasing put options on the iShares Semiconductor ETF (SOXX). This move comes after closing significant short positions on the S&P 500 and Nasdaq. SOXX includes major chipmakers like Nvidia (NVDA), AMD (AMD), Broadcom (AVGO), Intel (INTC), and Texas Instruments (TXN). The sector has grown 47% YTD, outperforming the broader tech market's QQQ, which is up 45%. Additionally, Burry has shorted Booking Holdings Inc. (BKNG) with 2,500 put options.
November 14, 2023 | 10:35 pm
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NEGATIVE IMPACT
AMD, part of the SOXX ETF, could see short-term impact from Michael Burry's bearish bet on the semiconductor sector.
AMD's stock might be negatively impacted in the short term due to its inclusion in SOXX, which is targeted by Burry's put options.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Broadcom, as a constituent of SOXX, may face downward pressure due to Michael Burry's short position in the semiconductor ETF.
Broadcom's inclusion in SOXX could lead to a negative impact on its stock price if the market reacts to Burry's bearish semiconductor stance.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Booking Holdings Inc. faces a significant short position from Michael Burry, with 2,500 put options against the company.
Burry's bet against BKNG with put options indicates a strong bearish sentiment, which could lead to a short-term drop in the company's stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Intel's stock may be influenced by Michael Burry's $47 million short bet against the semiconductor sector via SOXX.
Intel, being part of the SOXX ETF, could see its stock price affected if Burry's negative outlook on the sector gains traction among investors.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Nvidia, as a component of SOXX, may be indirectly affected by Michael Burry's large short bet against the semiconductor sector.
As a leading chipmaker in SOXX, Nvidia's stock may experience negative pressure if Burry's bet influences market sentiment towards the semiconductor industry.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Invesco QQQ Trust, which tracks the broader tech market, may be indirectly affected by Michael Burry's short positions in the semiconductor sector.
Although not directly targeted, QQQ could experience some negative sentiment as it includes tech companies that are part of the semiconductor industry affected by Burry's short bet.
CONFIDENCE 60
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Michael Burry has taken a $47 million short position in the semiconductor sector by purchasing put options on SOXX, indicating a bearish outlook.
Burry's significant short position suggests he expects a downturn in the semiconductor sector, which could influence other investors and potentially lead to a decrease in SOXX's price in the short term.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Texas Instruments, included in SOXX, might be impacted by Michael Burry's short bet against the semiconductor ETF.
Texas Instruments could experience a decline in its stock price as a result of Burry's bearish position on the semiconductor sector, which includes TXN through SOXX.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80